Let's consult! HMRC's summer feedback pack

In a consultative frenzy, HMRC this week issued eight separate documents setting out its proposals for new rules and reforms ranging from PAYE to pensions tax, controlled foreign company rules, travel & subsistence and furnished holiday lettings rules.

Many of the consultations pick up loose ends from Labour’s March Budget, or put forward new ideas such as PAYE reform and simplifying associated company rules around the small profits rate of corporation tax that were mooted in the coalition government’s June Budget.

This article sets out a brief overview of the topics under consideration, which will be examined in more detail in separate articles. Follow the links below to see the full consultation documents and further commentary on AccountingWEB.co.uk

In a consultative frenzy, HMRC this week issued eight separate documents setting out its proposals for new rules and reforms ranging from PAYE to pensions tax, controlled foreign company rules, travel & subsistence and furnished holiday lettings rules.

Many of the consultations pick up loose ends from Labour’s March Budget, or put forward new ideas such as PAYE reform and simplifying associated company rules around the small profits rate of corporation tax that were mooted in the coalition government’s June Budget.

This article sets out a brief overview of the topics under consideration, which will be examined in more detail in separate articles. Follow the links below to see the full consultation documents and further commentary on AccountingWEB.co.uk.

• Improving the operation of PAYE
  The consultation paper on improving the operation of Pay As You Earn (PAYE) seeks views on using real time information to simplify the system and reduce burdens on business.
   
• Furnished holiday lettings
  Following election-time shenanigans, the government plans to increase the minimum periods for holiday properties qualifying for relief.
   
• Pensions tax relief
  The new coalition government is considering a new approach involving the reform of existing allowances, including a significantly reduced annual allowance in the region of £30,000-£45,000
  
  
• Associated company rules
  New draft legislation sets down that rights are only attributable between associated individuals where “substantial commercial interdependence” exists between the relevant companies.
  
  
• Inheritance tax avoidance schemes
  New IHT Description Regulations will set out trust arrangements that would have to be notified under the extended Disclosure of Tax Avoidance Schemes (DOTAS) regime.
  
  
• Taxation of foreign branches
  The first of two consultations on Corporation Tax issues reforms to enhance the competitiveness of companies operating in the UK and abroad through more territorial tax arrangements.
  
  
• Controlled Foreign Companies interim improvements
  Part two of the Corporation Tax consulation covers interim reforms ahead of a more detailed reform of CFC rules planned for the spring of 2012. Look out for an event on the changes in September.
   
• Modernisation of Investment Trust Company (ITC) rules
  More reforms are planned to allow for wider investment strategies and reduce administrative burdens, without creating opportunities for unintended tax advantages.
  
  
• National Minimum Wage: travel and subsistence schemes
   NMW regulations will be changed so that travel and subsistence expenses to temporary work places that are allowable for tax and NICs purposes are not considered part of the wage calculation.